The continuing boom in personal computer and server sales drove Microsoft’s revenues up by 15 per cent in the last quarter while its cash mountain swelled to more than $60bn, according to figures released after the market closed on Thursday.
However, disappointment about the effect on its future profits from paying out $32bn via a special one-off dividend – which will rob the software giant of interest income – sent its shares down by 5 per cent in after-hours trading. Microsoft also said the yield on its remaining investments would fall next year after it shifted its cash into shorter-dated securities.
The company’s changing approach to how it manages its investment hoard also held down what would otherwise have been a banner quarter for operating earnings in the three months to the end of June.The company also forecast revenue growth for its next financial year of about 4.3-5.3 per cent, broadly in line with most analysts’ forecasts.
News source: Financial Times